Wilson, Player and Sharp are in partnership. They shared profits in the ratio 2:4:3. It is decided

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Wilson, Player and Sharp are in partnership. They shared profits in the ratio 2:4:3. It is decided to admit Titmus. It is agreed that goodwill is worth £72,000 and that it is to be brought into the business records. Titmus will bring £30,000 cash into the business for capital. The new profit sharing ratio is to be Wilson 5: Player 8: Sharp 4: Titmus 3. The statement of financial position before Titmus was introduced was as follows:

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(a) The entries in the capital accounts of Wilson, Player, Sharp and Titmus, the accounts to be in columnar form.

(b) The statement of financial position after Titmus has been introduced.

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Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

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